The Genesis India Consumer Indicator (GICI) increased sharply to 59.04 in April from 54.87 in March. All five components that comprise the indicator rose on the month led by a sharp positive reappraisal of both current and future business conditions.

Consumers reported greater confidence across a range of measures indicating that they were more prepared to increase spending. Buying sentiment for large consumer durables increased for the third consecutive month to a record high of 70.38.

This greater optimism was seen in sentiment towards automobile purchasing, with an increased proportion of the panel reporting that they thought it was a good time to buy an automobile. The sharp increase in sentiment took it to the highest since the series started in October 2017. Honda was the most preferred brand for two-wheelers while Maruti led the pack among cars.

There was continued improvement in attitudes towards real estate in April. The Real Estate Indicator, which measures whether people think it’s a good time for people to buy real estate, increased for the third consecutive month to 51.7. This was the first time it has been above the 50 breakeven level, indicating that optimists now outnumber pessimists.

The percentage of respondents who have shopped online in the past three months fell slightly to 38% in April from 39% in March. Respondents were more likely to purchase electronic items or clothing online while online shopping for personal accessories and household goods declined.

Chief Economist of GMMR, Philip Uglow, said “Consumer sentiment increased sharply in April with respondents far more upbeat across a wide range of indicators. Attitudes to autos, real estate and consumer durables all hit new highs in April.”

“There have been calls for the RBI’s Monetary Policy Committee to cut interest rates in the wake of lower inflationary pressures. The increase in consumer confidence, however, echoes the recent pick-up in economic activity and suggests the RBI will maintain rates at their current level for the near future.”